USD/CAD struggles to surpass 1.32 mark, clings to small gains near 1.3180

• Major pairs are moving sideways on Monday. 
• US Dollar Index stays directionless above 95.
• Trade concerns don't allow crude oil prices to make a decisive recovery.

The USD/CAD pair started the new week in a calm manner and recorded small gains but failed to break above the 1.32 mark. As of writing, the pair was trading at 1.3183, adding 0.12% on a daily basis.

The loonie seems to be carrying the burden of last Friday's disappointing employment report from Canada, which showed that the unemployment rate rose to 6% in August from 5.8% in July with the total number of employed decreasing by 52K in August. 

Meanwhile, the upbeat NFP report from the U.S. helped the greenback gathered strength in the last session of the previous week and the US Dollar Index is sitting comfortably above the 95 mark. With no significant macroeconomic data releases from the U.S. on Monday, the index is unlikely to show sharp fluctuations in the remainder of the day.

On the other hand, after the U.S. President Trump on Friday announced that they were planning additional tariffs worth of $267 billion on Chinese imports, on top of the $200 billion tariffs, weighed on commodity prices. After ending the previous on a weak note, crude oil prices are struggling to make a decisive recovery and make it difficult for the loonie to outperform the dollar. At the moment, the barrel of WTI is up 0.3% on the day at $68.

Technical outlook

1.3200/05 (psychological level/Sep. 4 high) aligns as the first technical resistance ahead of 1.3290 (Jul. 19 high) and 1.3385 (Jun. 27 high). On the downside, supports could be seen at 1.3110 (Sep. 7 low), 1.3080 (50-DMA) and 1.3000 (psychological level).